Why does price usually retrace a bit to the stop loss point and then move in the direction of the trades? - Forex Questions and Answers - FXAnswer

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Why does price usually retrace a bit to the stop loss point and then move in the direction of the trades?

Why the buyers and sellers do this?

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In Fundamental Analysis
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- thegreeks
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1 year ago

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0 Votes You may have put your stop loss at a support or resistance point where it may be testing the point or it may be where near a recent highs or lows. by RPT 1 year ago by RPT 1 year ago
0 Votes Boripat It really depends on where you put your stop loss in a certain situation, some times price retraces when people take profit from their position before resuming its move. If your stop loss is activated by a price retracement after some period of price movement then I suggest you reconsider your strategy and readjust your stop so that in the future you wont be taken out of prematurely. by Harold 1 year ago by Harold 1 year ago
0 Votes We feel that the price usually retrace a bit to our stop loss point and then move in the direction of the trades because we have placed the stop loss to close to the current price. We shall place it to the next major support/resistance to avoid premature stop out. by Kingpin 1 year ago by Kingpin 1 year ago
0 Votes Forex Brokers are trying to take out stops (Stop hunting). Just clear the order in their book before before continue. They will loss less and make more money. by Warren 1 year ago by Warren 1 year ago

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You may have put your stop loss at a support or resistance point where it may be testing the point or it may be where near a recent highs or lows.

RPT

1 year ago

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Boripat
It really depends on where you put your stop loss in a certain situation, some times price retraces when people take profit from their position before resuming its move.

If your stop loss is activated by a price retracement after some period of price movement then I suggest you reconsider your strategy and readjust your stop so that in the future you wont be taken out of prematurely.

Harold

1 year ago

Votes

We feel that the price usually retrace a bit to our stop loss point and then move in the direction of the trades because we have placed the stop loss to close to the current price.

We shall place it to the next major support/resistance to avoid premature stop out.

Kingpin

1 year ago

Votes

Forex Brokers are trying to take out stops (Stop hunting). Just clear the order in their book before before continue. They will loss less and make more money.